German enterprise tech company SAP has agreed to pay more than $230 million to settle investigations into "recidivist" bribery practices in seven countries, US authorities said on Wednesday.
According to CNBC, the US Department of Justice said SAP has entered a three-year deferred prosecution agreement with federal prosecutors, who accused the company of violating the Foreign Corrupt Practices Act after allegedly bribing government officials in Indonesia and South Africa.
SAP Allegedly Commits Foreign Bribery
Acting Assistant Attorney General Nicole Argentieri of the Justice Department's Criminal Division said in a statement: "SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business."
"Today's resolution - our second coordinated resolution with South African authorities in just over a year - marks an important moment in our ongoing fight against foreign bribery and corruption. We look forward to continuing to strengthen our relationship with South African authorities and others around the world," she added.
The Justice Department noted that SAP and its employees engaged in bribery practices by offering cash, political donations, luxury goods, and shopping sprees to South African and Indonesian officials to win business.
Reuters reported that SAP also reached a related civil settlement with the US Securities and Exchange Commission (SEC).
To settle the SEC's charges, the company agreed to pay $98 million to settle charges over the same alleged bribery schemes in Azerbaijan, Kenya, Ghana, Malawi, and Tanzania, as well as Indonesia and South Africa.
In a statement, the SEC alleged that SAP inaccurately recorded the bribes as legitimate business expenses in its books and records, even though certain third-party intermediaries could not show that they provided the services they had been contracted for.
The SEC cited an incident involving an account executive at SAP's Indonesian subsidiary who allegedly paid bribes to officials in the country's Maritime Affairs and Fisheries ministry.
To hand over the bribes, a "freelance consultant" reportedly advised the account executive to bring "seventy million, in fifty thousand bills... Bring empty envelope."
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SAP to Pay $235 Million Settle Bribery Investigations
The total settlement amount, covering payments to the SEC, the Justice Department, and South African prosecutors, surpasses $235 million.
The decision to settle these cases follows SAP's acknowledgment of engaging in improper practices in various countries, highlighting the global reach of the alleged bribery schemes.
"SAP has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce," said US Attorney Jessica Aber for the Eastern District of Virginia.
"We will continue to vigorously prosecute bribery cases to protect domestic companies that follow the law while participating in the international marketplace," she added.
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